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Q. How do I know how much
my business is worth?
A. There are a number
of different methods or guidelines for
valuing a small business for the purpose
of sale. These methods are dependent upon
a host of variables that are unique to
each individual business. We generally
use a combination of methods including
a multiple of the seller’s discretionary
cash flow, and an analysis of current
market data and comparables of similar
businesses sold.
Your best bet is to contact
us to arrange a confidential consultation.
After we have a thorough understanding
of your business and its history and a
chance to review current and at least
2 years previous financial statements,
we can assist you in determining a supportable
asking price which should result in a
sale. |
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Q. What type of information
do you require for a listing?
A. For an initial confidential
consultation to review your business and
determine a supportable asking price,
we would need to see a current and two
years previous financial statements. If
you decide to move forward and list the
business with us, we would require all
of the applicable information that is
noted in the business sale preparation
guide. Please click here to view and print
a copy of our sale preparation guide.
Please feel to call us directly at 256-442-6325
if you like to move forward now in preparing
your business for sale. |
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Q. How long is a typical
business listing?
A. We ask all of our clients
to give us a minimum 6 to 12 months exclusive
listing. However, if at any time after
6 months from the original listing date,
you are not satisfied with our service
or the level of activity we have generated,
you are welcome to take your property off the market through written notification.
(However, we do ask for protection on
any clients that we have worked with for
6 months after the listing expires.) |
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Q. Do you charge any 'up-front
fees' to list and market my business?
A. Absolutely not. The
only compensation received is a commission
when we find a qualified buyer who purchases
your business, or an investor/partner
who purchases a portion of your business, unless prior written arrangement's are made. |
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Q. When is the right time
to offer my business for sale?
A. If you want to maximize
your return on your investment, the best
time to offer your business for sale is
when the business is growing and profitable.
Buying a business is a major leap of faith
for most buyers to begin with. Investing
in a business that has declining sales
or other mitigating factors such as new
competition only makes it a bigger challenge
to get a qualified buyer to move forward.
It takes a tremendous
amount of discipline and forethought to
offer a business for sale when things
are going well. But it is also unquestionably
the best time to execute your exit strategy.
Please contact us for more details on
preparing your exit strategy now. |
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Q. How long will it take
to sell my business?
A. This will depend on
a wide variety of factors. On average,
we advise our clients that it could take
anywhere from 3 to 6 months for their
business to sell. Obviously, there are
exceptions. We have seen some businesses
sell in a matter of weeks and some have
taken more than a year. The bottom line
is that good businesses that are properly
marketed and prepared for sale will eventually
sell. Please call us now at 256-442-6325
to arrange a confidential consultation
if you would like to move forward and
list your business. |
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Q. What are your commission
rates?
A. Most business brokerage
firms in Alabama typically charge a 10-12%
commission on the sales price of a business
opportunity. Due to the efficiencies we
have created with our I marketing program,
our rates tend to be a little more flexible
- on average 10% of the sales price for
most small businesses with a negotiated
minimum commission. In some cases, we
can also offer our Sellers additional
incentives regarding the commission rate
& structure not normally offered at
most business brokerage firms. For more
information, please feel free to contact
us directly at 256-442-1500 to arrange
a confidential consultation. All information
is held strictly confidential, and there
is absolutely no obligation. |
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Q. Why shouldn't I try
to sell my business on my own?
A. We have talked to many
business owners who have attempted to
sell a business on their own. Even with
the advantage of Internet marketing and
'for sale by owner' web sites, the vast
majority of them advised us they would
not attempt it again. It was just not
worth the hassle or any perceived cost
savings. Even the majority of the owners
that were successful admitted that having
a professional intermediary involved in
the deal would have undoubtedly made the
transaction smoother & less stressful.
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Q. Do you "co-broker" or
work with other business brokers to sell
your listings?
A. Yes. After taking appropriate
measures to protect our client's confidentiality,
we will work with any professional licensed
business broker if they have a qualified
buyer for one of our listings. We believe
that brokers who do not work with other
professional brokers are putting their
clients at a serious disadvantage by minimizing
the exposure to other potentially qualified
buyers in the market place. |
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Q. Why shouldn't I first
try offering my business to an employee
or to a competitor?
A. We have talked to many
business owners who have attempted to
sell a business on their own. Even with
the advantage of Internet marketing and
'for sale by owner' web sites, the vast
majority of them advised us they would
not attempt it again. It was just not
worth the hassle or perceived cost savings.
Even the majority of owners that were
successful admitted that having a professional
intermediary involved in the deal would
have undoubtedly made the transaction
smoother & less stressful. |
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Q. Do you represent Sellers
outside the Alabama area?
A. The short answer is
absolutely yes. Our strong innovative
marketing techniques have allowed us to
successfully market certain types of businesses
outside the State of Alabama. |
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contact us if you have any additional
questions. |
